17/09/2024 09:22

NEXTDC Ltd (NXT) $17.00

NXT slipped 1.3% on Monday, 15c below where it recently raised $750mn to fund its expansion into Asia. It made us revisit how this data-centres shares performed after its previous raises:

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30/08/2024 09:16

NEXTDC Ltd (NXT) $16.81

Last but not least is $10bn data centre business NXT which we believe is a great indirect way to gain exposure to the AI revolution, i.e. AI requires tremendous amounts of energy and high-performance, scalable storage options to manage massive data volumes produced by AI applications.

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29/08/2024 09:44

NEXTDC Ltd (NXT) $17.05

Data centre operator NXT slipped -4.3% on Wednesday after its guidance for FY 2025 overshadowed a solid FY24 performance. However, like fellow data centre play Goodman Group (GMG), NXT tends to “under promise and over deliver”.

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15/08/2024 09:21

NEXTDC (NXT) $16.84

We have discussed data centre operator NXT a few times over recent months as an alternative to both Xero (XRO) and Goodman Group (GMG). Although they are undoubtedly different businesses, they have been positively correlated over the last year, especially with GMG. The market will be looking for growth outside of Sydney later this month, which shouldn’t be too hard to achieve, in our opinion.

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01/08/2024 09:37

Xero Ltd (XRO) v NEXTDC (NXT)

We started reducing our exposure to XRO in mid-July on valuation grounds, and we are again considering going one step further and switching to fellow tech name NXT. So far in 2024, both stocks have rallied +23%, but we now see more upside from the data centre developer as opposed to the digital accountancy business, with the recent 27% correction in the highly correlated AI giant Nvidia affording us a better entry into NXT, i.e. AI requires huge amounts of energy and storage which NXT delivers with its data centres

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26/07/2024 09:14

NEXTDC Ltd (NXT) $16.50

We are in no hurry to increase our tech exposure, but it’s important to formulate a plan when we believe it is time to migrate back up the risk curve. We have liked NXT through 2024 but chose to play the data centre theme with Goodman Group (GMG); earlier in the month, we said NXT looked tired around $18, which was probably not aggressive enough. We trimmed our Goodman (GMG) position back to 3%, which will afford some room to add the highly correlated NXT to our growth portfolio into further weakness – our target area represents a total correction of over 15%.

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04/07/2024 09:14

NEXTDC Ltd (NXT) $17.65

NXT has boomed over the last 18 months in line with the increasing demand for data centres as AI dominates the market. However, having witnessed Nvidia’s recent sharp 16% pullback, it's becoming increasingly apparent that a huge amount of good news is already built into the space. While we wouldn’t be abandoning stocks like NXT, we do like GQG's decision to trim its AI exposure. We are considering whether our Goodman Group (GMG) holding has become too large after its charge higher in FY24.

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07/05/2024 09:33

Goodman Group (GMG) v NEXTDC (NXT)

While GMG and NXT are very different companies, they are both being labelled as quality proxies for the exponentially increasing demand for data centres: GMG – we remain bullish, targeting new all-time highs up towards $40, over 15% higher. NXT – we remain bullish, targeting new all-time highs up towards $20, over 15% higher.

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16/04/2024 09:21

NEXTDC Ltd (NXT) $15.88

NXT recommenced trading on Monday after raising $1.32bn at $15.40 per share, around 3% below where the stock closed on Monday. We are considering the data centre operator post the raise, as it looks towards rapid expansion to satisfy unprecedented customer demand. However, as we already hold Goodman Group (GMG) for data centre exposure, any purchases will be fussy in terms of price.

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12/04/2024 09:07

NEXTDC Ltd (NXT) $16.52

Data centre operator NXT is set to raise $1.3bn to expand its data centre pipeline, with a 1 for 6 pro-rata accelerated non-renounceable entitlement offer at $15.40. We remain fans of NXT and the area in which it operates; we chose GMG for data centre exposure, although both companies have a different model in which to benefit from the exponential sector growth.

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